7. Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Stock A	Stock B	Stock C
Boom	0.25	0.19	0.35	0.28
Good	0.30	0.14	0.13	0.14
Poor	0.10	0.00	0.10	0.05
Bust	0.35	0.20	0.28	0.13

a. Your portfolio is invested 35 percent each in Stocks A and C and 30 percent in Stock B. What is the expected return of the portfolio?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

b-1. What is the variance of this portfolio?

Note: Do not round intermediate calculations. Round your answer to 5 decimal places.

b-2. What is the standard deviation?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Problem 11-9 Returns and Standard Deviations (LO2, CFA4) Consider the following information: a. Your portfolio is invested 35 percent each in Stocks A and C and 30 percent in Stock B. What is the expected return of the portfolio? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b-1. What is the variance of this portfolio? Note: Do not round intermediate calculations. Round your answer to 5 decimal places. b-2. What is the standard deviation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places